ARC Resources Valuation
| ARX Stock | CAD 24.93 1.04 4.00% |
At this time, the firm appears to be undervalued. ARC Resources owns a latest Real Value of C$28.31 per share. The recent price of the firm is C$24.93. Our model approximates the value of ARC Resources from analyzing the firm fundamentals such as shares outstanding of 597.69 M, and Return On Asset of 0.11 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued equities and abandoning overvalued equities since, in the future, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting ARC Resources' valuation include:
Price Book 2.0559 | Enterprise Value 17.7 B | Enterprise Value Ebitda 4.8979 | Price Sales 2.7004 | Forward PE 12.2549 |
Undervalued
Today
Please note that ARC Resources' price fluctuation is very steady at this time. Calculation of the real value of ARC Resources is based on 3 months time horizon. Increasing ARC Resources' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for ARC Resources is useful when determining the fair value of the ARC stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of ARC Resources. Since ARC Resources is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ARC Stock. However, ARC Resources' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 24.93 | Real 28.31 | Hype 24.96 | Naive 24.82 |
The real value of ARC Stock, also known as its intrinsic value, is the underlying worth of ARC Resources Company, which is reflected in its stock price. It is based on ARC Resources' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of ARC Resources' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence ARC Resources' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of ARC Resources helps investors to forecast how ARC stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ARC Resources more accurately as focusing exclusively on ARC Resources' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use ARC Resources' intrinsic value based on its ongoing forecasts of ARC Resources' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against ARC Resources' closest peers. When choosing an evaluation method for ARC Resources, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
ARC Resources Investments |
|
ARC Valuation Trend
Knowing ARC Resources' actual value is paramount for traders to make sound investment determinations. ARC Resources' real value is not only important for the investor to make better decisions but also for a more accurate overall view of ARC Resources' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both ARC Resources' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
ARC Market Cap
ARC Resources is rated second in market capitalization category among related companies. Market capitalization of Energy industry is presently estimated at about 62.57 Billion. ARC Resources totals roughly 15.52 Billion in market capitalization claiming about 25% of equities under Energy industry.ARC Resources Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining ARC Resources's current stock value. Our valuation model uses many indicators to compare ARC Resources value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ARC Resources competition to find correlations between indicators driving ARC Resources's intrinsic value. More Info.ARC Resources is rated fifth in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.37 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for ARC Resources is roughly 2.73 . As of the 1st of May 2024, Price To Book Ratio is likely to drop to 1.30. Comparative valuation analysis is a catch-all model that can be used if you cannot value ARC Resources by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ARC Resources' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ARC Resources' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates ARC Resources' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in ARC Resources and how it compares across the competition.
About ARC Resources Valuation
The stock valuation mechanism determines the current worth of ARC Resources on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of ARC Resources. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ARC Resources based exclusively on its fundamental and basic technical indicators. By analyzing ARC Resources's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ARC Resources's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ARC Resources. We calculate exposure to ARC Resources's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ARC Resources's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 2.6 B | |
| Pretax Profit Margin | 0.32 | 0.19 | |
| Operating Profit Margin | 0.27 | 0.26 | |
| Net Profit Margin | 0.25 | 0.19 | |
| Gross Profit Margin | 0.40 | 0.62 |
8 Steps to conduct ARC Resources' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates ARC Resources' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct ARC Resources' valuation analysis, follow these 8 steps:- Gather financial information: Obtain ARC Resources' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine ARC Resources' revenue streams: Identify ARC Resources' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research ARC Resources' industry and market trends, including the size of the market, growth rate, and competition.
- Establish ARC Resources' growth potential: Evaluate ARC Resources' management, business model, and growth potential.
- Determine ARC Resources' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate ARC Resources' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in ARC Resources. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Complementary Tools for ARC Stock analysis
When running ARC Resources' price analysis, check to measure ARC Resources' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ARC Resources is operating at the current time. Most of ARC Resources' value examination focuses on studying past and present price action to predict the probability of ARC Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ARC Resources' price. Additionally, you may evaluate how the addition of ARC Resources to your portfolios can decrease your overall portfolio volatility.
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |